5 Most Undervalued Small Cap Stocks to Buy Right Now

4. Adecoagro S.A. (NYSE:AGRO)

Adecoagro S.A. (NYSE:AGRO) is one of the most undervalued small cap stocks to buy right now. Adecoagro S.A. (NYSE:AGRO) was downgraded to Neutral from Buy by Citi on April 15, with the firm raising the price target on the stock to $15 from $13. The firm attributed the price target increase to factors such as the higher urea prices and better ethanol prices compared to previous expectations in the near term because of higher energy prices, along with supply disruptions related to the conflict in the Middle East. However, Citi also stated that the stock has priced in a better scenario given the unattractive yields/multiples and after the recent stock performance, up 83% year-to-date.

In a separate development, Adecoagro S.A. (NYSE:AGRO) was upgraded to Buy from Neutral on March 30, with the firm lifting the price target on the stock to $16.20 from $8. The firm stated that the shares do not reflect the company’s Profertil acquisition and higher sugar, ethanol, and urea prices. It further told investors in a research note that although the stock is up 80% year-to-date after the 79% increase in urea prices due to Middle East supply disruptions, the market is still underestimating Adecoagro’s (NYSE:AGRO) EBITDA and cash flow upside from its fertilizers unit.

Adecoagro S.A. (NYSE:AGRO) provides agricultural and agro-industrial products and services, with the company’s operations divided into the following segments: Farming, Sugar, Ethanol and Energy, and Land Transformation.